215 held in two months in fake GST invoice fraud cases

NEW DELHI: As many as 215 persons have been arrested in the last two months across the country in a drive against fake GST invoice fraud cases perpetrated through fake entities and fly-by-night operators who fraudulently availed input tax credit (ITC) in multi-layered scams.

Those arrested by the Directorate General of GST Intelligence (DGGI) and the CGST Commissionerates include six Chartered Accountants and one Company Secretary, sources said.

Others arrested include 71 masterminds, 81 proprietors, 36 Directors or Managing Directors, 15 partners, three CEOs, and one each broker and GST practitioner, the sources added.

GST intelligence authorities have also registered around 2,200 cases and unearthed more than 6,600 fake GSTIN entities. Authorities have also seized more than Rs 700 crore from these fraudsters. The sources said that those arrested included operators of fake entities and end- beneficiaries who connived with these frauds in running the business of fake invoices on commission basis.

Use of data analytics, data-sharing and AI along with BAFTA tool enabled the GST ecosystem and intelligence authorities to identify layer-by-layer activities of these fake entities and pinpoint the fraudsters with precise input.

To further tackle the menace of fake invoice frauds and misutilisation of ITC, the Union government has acted on the recommendations of Law Committee of GST Council and placed qualified restrictions of 1 per cent on the use of ITC for tax liability in a manner that does not impact ease-of-doing business for genuine taxpayers.

DGGI sources said that in the last two days, 17 arrests have been made in fake invoice frauds and further investigations are on. So far, a maximum of 23 arrests have been made in Mumbai zone.

In the last two days, Ahmedabad Zonal Unit officials have registered 14 cases and initiated actions against AK Impex, Mannat Impex, Roselabs Bioscience, among others. (IANS)

Also Read: Lankeswar Dham Management Committee urges Kamrup (M) DC to Make it Free from Enrochers

Also Watch: Guwahati Gears Up for Magh Bihu Festivity